AppLovin Wants TikTok But Can It Beat Amazon And OnlyFans To The Punch?

AppLovin Corporation (NASDAQ:APP) shares were trading lower in premarket hours on Friday after the company confirmed it had submitted a preliminary expression of interest to the U.S. President regarding a potential acquisition of TikTok’s operations outside of China.

“This indication of interest is preliminary and there can be no assurance that a transaction involving the Company will proceed,” AppLovin said in an exchange filing.

The mobile technology firm joins a growing list of companies looking to secure TikTok’s international business as the platform faces a fast-approaching deadline to find a new owner.

Also Read: TikTok Clock Ticks Louder As Deadline Approaches, Trump To Consider Final Proposal As Private Equity Firms Bid For Platform

AppLovin clarified that its interest is still in the early stages and that there is no certainty a deal will materialize, Reuters reports.

Reuters adds that Amazon.com Inc. (NASDAQ:AMZN) has also reportedly shown interest in the short-form video platform.

Meanwhile, a separate group led by OnlyFans founder Tim Stokely is also said to be exploring a bid, underscoring the fierce competition to take over TikTok’s global business.

AppLovin’s announcement comes during a turbulent time for the company. According to Benzinga Pro, APP stock has lost over 19% in the past year.

It recently came under fire from short-seller Muddy Waters, which issued a report criticizing its e-commerce practices.

The report claims that more than half of AppLovin’s customer conversions come from retargeting users, suggesting that only a small portion of its sales—between 25% and 35%—are actually incremental.

Muddy Waters also accused the company of gathering user data from major platforms such as Meta Platforms Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOGL), and TikTok to construct artificial user profiles. According to the report, this practice may violate platform policies. It further alleges that AppLovin uses persistent identity graphs to covertly retarget high-value users, making it difficult for platforms to detect or prevent the activity.

As the race to acquire TikTok intensifies, AppLovin faces a dual challenge: navigating regulatory hurdles while defending its own reputation against mounting criticism.

Investors can gain exposure to the stock via AdvisorShares Focused Equity ETF (NYSE:CWS) and Gabelli ETFs Trust Gabelli Financial Services Opportunities ETF (NYSE:GABF).

Price Action: APP shares are trading lower by 6.31% to $245.46 at last check Friday.

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